NasdaqGS:KLIC

Stock Analysis Report

Kulicke and Soffa Industries

Executive Summary

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools to assemble semiconductor devices.

Rewards

Trading at 50.9% below its fair value

Earnings are forecast to grow 42.32% per year

Risk Analysis

Dividend of 1.83% is not well covered by earnings

Profit margins (3.3%) are lower than last year (15.9%)



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Kulicke and Soffa Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KLIC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

KLIC

4.9%

US Semiconductor

1.8%

US Market


1 Year Return

17.0%

KLIC

41.1%

US Semiconductor

20.1%

US Market

Return vs Industry: KLIC underperformed the US Semiconductor industry which returned 40.8% over the past year.

Return vs Market: KLIC underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

KLICIndustryMarket
7 Day0.5%4.9%1.8%
30 Day-5.3%4.3%1.4%
90 Day8.5%14.2%8.8%
1 Year19.4%17.0%43.8%41.1%22.7%20.1%
3 Year32.4%27.6%95.7%85.1%50.1%40.4%
5 Year69.3%63.2%158.6%133.8%72.9%53.9%

Price Volatility Vs. Market

How volatile is Kulicke and Soffa Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kulicke and Soffa Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KLIC ($26.21) is trading below our estimate of fair value ($53.33)

Significantly Below Fair Value: KLIC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KLIC is poor value based on its PE Ratio (95.8x) compared to the Semiconductor industry average (36.4x).

PE vs Market: KLIC is poor value based on its PE Ratio (95.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: KLIC is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: KLIC is good value based on its PB Ratio (2.2x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Kulicke and Soffa Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KLIC's forecast earnings growth (42.3% per year) is above the savings rate (1.7%).

Earnings vs Market: KLIC's earnings (42.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KLIC's revenue (18.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: KLIC's revenue (18.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KLIC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kulicke and Soffa Industries performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KLIC has high quality earnings.

Growing Profit Margin: KLIC's current net profit margins (3.3%) are lower than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: KLIC's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: KLIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KLIC had negative earnings growth (-86.7%) over the past year, making it difficult to compare to the Semiconductor industry average (-27%).


Return on Equity

High ROE: KLIC's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kulicke and Soffa Industries's financial position?


Financial Position Analysis

Short Term Liabilities: KLIC's short term assets ($926.6M) exceed its short term liabilities ($202.2M).

Long Term Liabilities: KLIC's short term assets ($926.6M) exceed its long term liabilities ($140.2M).


Debt to Equity History and Analysis

Debt Level: KLIC's debt to equity ratio (9.8%) is considered satisfactory.

Reducing Debt: KLIC's debt to equity ratio has increased from 2.3% to 9.8% over the past 5 years.

Debt Coverage: KLIC's debt is well covered by operating cash flow (46.1%).

Interest Coverage: KLIC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: KLIC has a low level of unsold assets or inventory.

Debt Coverage by Assets: KLIC's debt is covered by short term assets (assets are 12.2x debt).


Next Steps

Dividend

What is Kulicke and Soffa Industries's current dividend yield, its reliability and sustainability?

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: KLIC's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: KLIC's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KLIC has been paying a dividend for less than 10 years.

Growing Dividend: KLIC has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (175.5%), KLIC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Fusen Ernie Chen (60yo)

3.3yrs

Tenure

US$4,378,485

Compensation

Dr. Fusen Ernie Chen, Ph.D., has been the President and Chief Executive Officer of Kulicke and Soffa Industries, Inc. since October 31, 2016. Dr. Chen served as the Chief Executive Officer and President of ...


CEO Compensation Analysis

Compensation vs Market: Fusen Ernie's total compensation ($USD4.38M) is about average for companies of similar size in the US market ($USD3.74M).

Compensation vs Earnings: Fusen Ernie's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fusen Ernie Chen
President3.3yrsUS$4.38m0.92% $15.4m
Lester A. Wong
Senior VP of Legal Affairs2.3yrsUS$1.02m0.23% $3.8m
Mun Pun Wong
Senior Vice President of Global Sales0.3yrsUS$740.34k0.23% $3.8m
Chan Pin Chong
Executive VP and GM of K&S Products and Solutions3.1yrsUS$886.23k0.16% $2.7m
Shai Soloveizik Zamir
Vice President of Global Operations0.9yrsno data0.035% $590.7k
Joseph Elgindy
Director of Investor Relations & Strategic Planning10yrsno datano data
Lisa Lim
Vice President of Global Human Resources8.1yrsno datano data
Joyce Lim
Senior Vice President of Global Supply Chain1.3yrsno datano data
Lien Lee Ang
Global Head of IT and Senior Director5.5yrsno datano data
Susan Waters
Secretary0yrsno datano data

3.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: KLIC's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fusen Ernie Chen
President3.3yrsUS$4.38m0.92% $15.4m
Garrett E. Pierce
Chairman of the Board5.4yrsUS$262.71k0.21% $3.5m
Gregory F. Milzcik
Independent Director6.3yrsUS$228.96k0.099% $1.7m
Brian R. Bachman
Independent Director16.3yrsUS$218.96k0.037% $620.3k
Chin-Hu Lim
Independent Director8.2yrsUS$211.46k0.12% $1.9m
Peter T. Kong
Independent Director6yrsUS$212.71k0.11% $1.8m
Mui Sung Yeo
Independent Director7.3yrsUS$232.71k0.11% $1.9m

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: KLIC's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kulicke and Soffa Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kulicke and Soffa Industries, Inc.
  • Ticker: KLIC
  • Exchange: NasdaqGS
  • Founded: 1951
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$1.673b
  • Shares outstanding: 63.82m
  • Website: https://www.kns.com

Number of Employees


Location

  • Kulicke and Soffa Industries, Inc.
  • No. 01-01, K&S Corporate Headquarters
  • 23A Serangoon North Avenue 5
  • Singapore
  • 554369
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KLICNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1970
KU1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1970

Biography

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools to assemble semiconductor devices. It operates in two segments, Capital Equipment, and Aftermarket Products and Services (APS). The Capital Equipment segment manufactures and sells ball and wedge bonders, and advanced packaging and electronic assembly solutions. The APS segment manufactures and sells capillaries, dicing blades, and bonding wedges. The company also services, maintains, repairs, and upgrades equipment. It serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/15 23:38
End of Day Share Price2020/02/14 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.